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    What is the expected return on a portfolio comprised of $3,000 in stock K and $5,000 in stock L if the economy is normal?

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    What is the expected return on a portfolio comprised of $3,000 in stock K and $5,000 in stock L if the economy is normal?

    State of Probability of Returns if State Occurs
    Economy State of Economy Stock K Stock L

    Boom 20% 14% 10%
    Normal 80% 5% 6%

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    https://brainmass.com/business/accounting/82498

    Solution Summary

    The computation is shown step-by-step for you.

    $2.19

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